Plan Sponsor

If you go to AA, or watch the TV series, Mom, you get what a sponsor is. It's a person you get to talk to if you have any questions, or you find yourself at 4 am jonesing for a vodka tonic.

A plan sponsor has a vaguely similar relationship. In this case, though, we're dealing with retirement accounts, like a 401(k). In most cases, the plan sponsor will be the employer. It's the body that enforces the rules and provides the main hub of communication (much like the person you met at AA).